BRIC Countries - Background, Facts, News and Original Articles BRIC Countries Select Page BRIC Countries – Background, Key Facts, News and Original Articles The BRIC countries label refers to a select group of four large, developing countries ( Brazil , Russia, India and China ). The four BRIC countries are distinguished from a host of other promising emerging markets by their demographic and economic potential to rank among the world’s largest and most influential economies in the 21st century (and by having a reasonable chance of realizing that potential). Together, the four original BRIC countries comprise more than 2.8 billion people or 40 percent of the world’s population, cover more than a quarter of the world’s land area over three continents, and account for more than 25 percent of global GDP. Follow @GlobalSherpa BRIC Countries’ Path to 2050 A country’s population and demographics, among other factors, directly affect the potential size of its economy and its capacity to function as an engine of global economic growth and development. As early as 2003, Goldman Sachs forecasted that China and India would become the first and third largest economies by 2050, with Brazil and Russia capturing the fifth and sixth spots.

The chart below shows a more recent forecast of the world ranking of the biggest economies in the year 2050. (Click on the image below to view the full-size chart in a separate tab or browser window.) One BRIC, Two BRICs The BRIC designation was first coined by Jim O’Neil of Goldman Sachs in a 2001 paper titled “The World Needs Better Economic BRICs.” The BRIC countries have since gone on to meet and seek out opportunities for cooperation in trade, investment, infrastructure development and other arenas. China invited South Africa to join the group of BRIC nations in December, 2010 and hosted the third annual BRICs Summit in April, 2011. Key Indicators and Statistics Economic Growth and Development of the BRICs From 2000 to 2008, the BRIC countries’ combined share of total world economic output rose from 16 to 22 percent. Together, the BRIC countries accounted for 30 percent of the increase in global output during the period. To date, the scale of China’s economy and pace of its development has out-distanced those of its BRIC peers.

China alone contributed more than half of the BRIC countries’ share and greater than 15 percent of the growth in world economic output from 2000 to 2008. The chart above on key development indicators for the BRIC countries shows the sharp contrast in GDP, merchandise exports and the UNDP’s Human Development Index (HDI) between China and the other BRIC countries. Growing BRIC Middle Class The rapid economic growth and demographics of China and India are expected to give rise to a large middle class whose consumption would help drive the BRICs’ economic development and expansion of the global economy. The charts below depict how the increase in the middle class population of the BRIC countries is forecasted to more than double that of the developed G7 economies. (Click on the images below to view the full-size charts in separate tabs or browser windows.) Science and Technology in the BRICs The BRIC countries of China, India and Brazil account for much of the dramatic increase in science research investments and scientific publications. Since 2002, global spending on science R&D has increased by 45 percent to more than $1,000 billion (one trillion) U.S. dollars.

From 2002 to 2007, China, India and Brazil more than doubled their spending on science research, raising their collective share of global R&D spending from 17 to 24 percent. China’s development planning has targeted a number of scientific fields and related industries, including clean energy, green transportation and rare earths, among others. Since 1999, China’s spending on science R&D has grown 20 percent annually to more than $100 billion. By 2020, China plans to invest 2.5 percent of GDP in science research. Next 11 Emerging Markets Many analysts and commentators have suggested expanding the original group of four BRIC nations to include other emerging markets. Goldman Sachs has resisted conferring BRIC status on other developing countries on the grounds that their demographics and economic characteristics do not hold the potential for them to rival the economic size or influence of the BRIC countries or today’s leading economies (e.g., U.S. and Japan). In a nod to the interest in other emerging markets, Goldman Sachs identified another group of economically dynamic and promising developing countries creatively labeled the “Next 11” in its 2005 Economics Paper No.

134 “How Solid are the BRICs?” The Next 11 consists of a broader group of emerging markets with the potential to play significant roles in the global economy, including: Bangladesh, Egypt, Indonesia, Iran, Korea, Mexico, Nigeria, Pakistan, Philippines, Turkey and Vietnam. Mexico and South Korea Of the Next 11, two countries, Mexico and “perhaps” South Korea, were considered to “have the capacity to become as important globally as the BRICs.” Both OECD countries were excluded from the BRIC grouping on the basis that they were already too much farther along in their economic development than the BRICs and were not likely to attain the economic stature or global influence of the original four BRIC countries. Indonesia Indonesia has been one of the stronger performers of the Next 11 group of developing countries. With greater than 230 million people, Indonesia’s population is more than 4 times larger than South Africa’s population and more than 60 percent bigger than Russia’s. At $540.3 billion in 2009, Indonesia’s GDP was nearly double that of South Africa, though it was still less than half the size of Russia’s economy.

South Africa Despite China’s invitation, Goldman Sachs’ O’Neil has long contended that South Africa’s population of 50 million people, a fraction of Russia’s 143 million and China’s 1.34 billion people, is too small for BRIC status. At roughly $285 billion in 2009, South Africa’s economy was less than one quarter that of Russia’s, the smallest of the original BRIC country economies at about $1,232 billion. Growth Environment Score (GES) The Growth Environment Score (GES) was introduced by Goldman Sachs in the same paper that identified the Next 11. The GES is an index developed to measure the extent to which structural conditions and policy settings in a country are conducive to transforming the economic potential of the BRICs, Next 11 and other countries into reality.

The GES consists of 13 sub-indices that fall under one of five categories of economic growth determinants: o Macroeconomic stability – inflation, government deficit and external debt o Macroeconomic conditions – investment and openness o Technological capabilities – penetration of phones, PCs and internet o Human capital – average years of secondary education and life expectancy o Political conditions – political stability, rule of law and corruption In the original 2005 version of the GES, the scores for each of the four BRIC countries fell in the top half and above the mean of the rankings for all developing countries. On the other hand, the BRICs came in well behind more developed economies on the list of GES scores for all countries, with China ranking 53, Russia 81, Brazil 95 and India 97. Among the N-11, South Korea fared best at 17 with a score comparable to many advanced economies, followed by Mexico (59), Vietnam (63), South Africa (80), Iran (86), Egypt (91), Turkey (112), Indonesia (114), Pakistan (126), Bangladesh (134) and Nigeria (147).

Follow @GlobalSherpa Original BRIC Articles and Related Content BRIC Country pages: Brazil , China , India (with live news feeds, country background and statistics, and links to original articles) Explainer: What Are the BRICS? | AS/COA Explainer: What Are the BRICS? (Image: Government of South Africa) Brendan O'Boyle July 11, 2014 Updated July 16, 2014—Originally an investment catchphrase, a group of five countries known as the BRICS decided to band together on the global stage. The BRICS, made up of Brazil, China, India, Russia, and South Africa, are characterized by rapidly growing economies and increasing international influence. With over 40 percent of the world’s population, these countries’ combined output constitutes more than 20 percent of global GDP. Economists predict that Brazil, China, India, and Russia will join the United States as the five largest economies in the world by 2050 . Leaders from the BRICS have taken steps to capitalize on the group’s economic potential by holding summits to discuss market integration and diplomatic cooperation.

On July 15, the heads of state of all five BRICS countries convened in Fortaleza, Brazil, for their sixth summit , cementing the creation of a new development bank and a foreign exchange reserves pool. AS/COA Online looks at how BRICS has changed over the years and where the group is heading. See how BRICS trade has evolved in a series of infographics . Origins and Evolution The BRIC acronym originally referred to the informal grouping of Brazil, China, India, and Russia. Goldman Sachs economist Jim O’Neill first coined the name in 2001, predicting that the four countries’ share of global GDP would increase significantly over the first decade of the century and would outpace growth of some of the world’s largest economies. Over the next few years, foreign ministers from these four countries began to meet sporadically, first convening in 2006 during the sixty-first UN General Assembly in New York. These dialogues looked at ways the countries could cooperate politically. Soon, though, talks turned to the economic crisis. As the 2008 recession hit U.S. and European markets, steady growth in China and India increased the BRIC countries’ confidence in weathering the slowdown.

Oliver Stuenkel, a fellow at the Berlin-based Global Public Policy Institute , wrote that the instability in developed countries juxtaposed with the relative strength of developing economies “ caused a legitimacy crisis of the international financial order, which led to equally unprecedented cooperation between emerging powers.” This cooperation came to light when BRIC finance ministers met in November 2008 in São Paulo, Brazil and released a communiqué detailing their commitment to work together in light of the financial crisis. That month, then Russian President Dmitry Medvedev and his Brazilian counterpart Luiz Inácio Lula da Silva agreed to arrange the first BRIC heads-of-state summit. The countries approved a rotating presidency, which is given to the country that hosts the annual summit. As such, Brazil will assume the position this month. When China held the presidency in 2010, BRIC became BRICS when former Chinese President Hu Jintao wrote a formal invitation to South Africa to include the country in the group. Heads-of-State Summits The first heads-of-state BRIC meeting took place in June 2009 in Yekaterinburg , Russia. Medvedev described the summit as a necessary reaction to the global financial crisis .

During the meeting, leaders discussed the importance of creating a more diverse international monetary system , with a diminished reliance on the dollar as the global reserve currency. The second summit was held the following year in Brazil, and saw the addition of South African President Jacob Zuma as an attendee. Topics included Iran’s nuclear program and the importance of cooperation in the areas of energy and food security . In December 2010, South Africa was officially invited to become the fifth member of the group. The sub-Saharan African country had actively campaigned for an invitation and saw its inclusion in the group as a way to connect the BRIC economies with the African market . BRIC formally became BRICS at the third summit in Hainan, China in April 2011. In April 2012, the fourth summit was held in New Delhi, India, where heads of state called for expanded voting rights at the International Monetary Fund (IMF). The delegates also began considering an alternative BRICS-led development bank , a proposal that was formally agreed to at the fifth summit in South Africa in March 2013.

Also during the South Africa summit, countries agreed to establish the BRICS Business Council made up of five entrepreneurs from each country to discuss ways to expand cooperation. The Council has a rotating chair between the five countries. In July 2014, the sixth summit took place in Fortaleza, Brazil, where leaders signed agreements to establish a development bank and a currency reserve pool. Discussions also touched on the IMF’s lack of reforms to ensure greater representation of developing countries, as well as sustainable development. BRICS Institutions The BRICS model has evolved from investment lingo to a formalized network hoping to capitalize on the group’s collective promise in the wake of instability in the global economy. In doing so, it has taken on a greater geopolitical role , with aims to enact institutional reforms that shift global power. While initial discussions focused on the need to reform international institutions, including the IMF and the UN Security Council, recent developments center on creating a new institutional body. At the BRICS presidential summit in 2013, delegates agreed to establish a BRICS development bank which would serve as an alternative to the World Bank . Watch a video to find out what experts think about the bloc's future.

Leaders formalized this institution at the July 2014 summit, signing an agreement to create the “New Development Bank” with $100 billion in capital. Initially, the five countries will each underwrite $10 billion in capital for a total of $50 billion. Located in Shanghai, the bank will fund infrastructure and sustainable development projects in both BRICS countries and developing markets. The first bank president will hail from India, and the presidency will rotate. The board of directors will come from Brazil, and the first chair of the board of governors will be Russian. South Africa will be home to the bank’s first regional center for Africa. The heads of state instructed finance ministers from the five counties to work on organizing the bank’s operations. Slated to open in 2016, bank membership will be open to other countries, though BRICS capital share cannot fall below 55 percent. Heads of state also signed an accord to found a joint foreign exchange reserves pool called a Contingent Reserve Arrangement—similar to the IMF—which establishes an initial reserve of $100 billion and acts as an emergency option for BRICS countries with balance-of-payment troubles.

Much of the fund will be provided by China, which will contribute $41 billion. Brazil, India, and Russia, will each contribute $18 billion while South Africa will contribute $5 billion. "It is a sign of the times, which demand reform of the IMF," said Brazilian President Dilma Rousseff at the summit . Adding New Members Before the July summit, there was speculation about the possible invitation of Argentina to the BRICS. For the first time, Argentine President Cristina Fernández de Kirchner has been invited to attend the summit as the only non-bloc head of state in attendance. The invitation came during a May 28 meeting between Russia and Argentina’s foreign ministers, and fueled discussion of the country's possible inclusion in the BRICS membership, given the process of South Africa’s incorporation in 2011. But during the summit, Rousseff said Argentine membership was not in the cards , though she said it could happen in the future with consensus among all five members. Incorporating new countries has proved controversial.

O’Neill himself expressed doubt over the merit of South Africa’s addition , claiming that other countries with high growth, including South Korea, more adequately fit the description of a BRIC as he laid out in his 2001 paper. The Economist even suggested that South Africa’s inclusion took place to represent African countries in a way that kept the acronym intact and not as a result of comparative economic factors. Plus, adding new members raises questions over both the permanence and efficacy of the label. Numerous countries, including Indonesia, Mexico, and Vietnam, fit the emerging market description as Argentina does, some economists say. For example, Indonesia, which has the second fastest economic growth in Asia after China, has for years lead economists to ask if BRICS should instead be BRIICS. Rachel Glickhouse contributed to this report. BRICS: CNBC Explains CNBC Explains Thursday, 11 Aug 2011 | 2:58 PM ET CNBC.com SHARES BRICS may sound like something you use to build a house, but they're the initials of some very important countries with economies that affect the world. Ivcandy | Getty Images So what countries make up the BRICS? How did the term come about?

What impact do the BRICS have? CNBC explains. What are the BRICS? BRIC are the letters that originally stood for these countries: Brazil, Russia, India and China. South Africa became part of the BRIC nations in 2010, turning BRIC into BRICS. Actually, the BRICS were first formed on paper rather than as a real group. Here's how it started. The acronym has been attributed to Goldman Sachs chief economist Jim O'Neill in a 2001 paper he wrote called, "Building Better Global Economic BRICs ." In his paper, O'Neill argued that since the four BRIC countries were developing rapidly, by 2050 their combined economies could eclipse all the economies of the richest countries in the world. The BRICS acronym has come to be used as a symbol of the shift in global economic power away from the developed G7 economies—like the U.S.—and toward the developing world. The five nations if combined would be the largest entity on the global stage, according to Goldman Sachs, which has continued to monitor the four countries since 2001. They are considered among the biggest and fastest growing emerging markets, or those markets still developing.

Many analysts consider the BRICS a good place for investment because of their growing populations, infrastructure building, and expansive middle class. Are the BRICS a true economic bloc? The Goldman Sachs theory isn't that these countries are a political alliance—like the European Union—but that they have the potential to become a powerful economic bloc. Currently, there are no reported formal agreements among all the five countries. But there have been agreements between some of the BRICs. Those agreements include the Shanghai Cooperation Organization between Russia and China, which includes India as an observer. There's also the IBSA Trilateral Forum, in which Brazil, India, and South Africa take part in annual talks. There are some indications that the BRICS are trying to actually organize themselves as a group. On June 16, 2009, the leaders of the BRIC countries held their first summit in Russia, and issued a declaration calling for the establishment of an "equitable, democratic and multipolar world order." Since then they have met in Brazil in 2010 and in China in 2011. What makes the BRIC countries powerful? The BRICS have a lot going for them.

These countries encompass over 25% of the world's land coverage and 40% of the world's population and hold a combined gross domestic product or GDP of 18.5 trillion dollars, according to recent statistics. Brazil's resources include massive amounts of oil, along with large supplies of agricultural products. Russia, too, has great repositories of oil, along with coal and natural gas. India has iron ore, bauxite, and copper ore and is one of the major producers of iron in the world. South Africa is the largest energy producer and consumer on the African continent. In addition to diamonds and gold, the country also has reserves of iron ore, platinum, manganese, chromium, copper, uranium, silver, beryllium, and titanium. China has coal, iron ore, petroleum, natural gas, mercury, rare earth elements, uranium, and the world's largest potential for hydropower. China is currently the world’s largest exporter. India has 10 of the 30 fastest-growing urban areas in the world and could see 700 million people move to cities by 2050, according to Goldman Sachs—which means greater demand for goods and services by India's population and faster economic growth.

The BRICS theory from Goldman believes that China will become the world's biggest supplier of manufactured goods, India will become the world's dominant supplier of services , while Brazil and Russia will become dominant as suppliers of raw materials. Of the five BRIC countries, China is said to have the strongest economy, which is actually larger than that of the four other BRIC economies combined. Will the BRICS expand? There has been speculation that South Korea and Mexico will become additions to the BRICS. They were not included in Jim O'Neill's original paper in 2001, because they looked to be more developed nations and economies than Brazil, Russian India, and China, according to O'Neill. Neither country has officially tried to join. Indonesia has said it might want to be part of the BRICS at some time in the future. Are the BRICS a true economic force? To many observers and investors , the BRIC countries are merely five separate emerging markets with little in common. They are countries developing their economies—with a high pay off, but also with high risks. The risks include fears that all five could fail to live up to their economic potential.

There are political concerns over human right issues in China and Russia that could keep out future investors and slow their economic growth. Looking at India, its troubled past with Pakistan could limit government finances, increase social unrest, and limit potential domestic economic demand. Brazil is said to just be getting some economic growth back after years of limited or negative growth, and slowing foreign investing. And South Africa has a mixed economy with a very high rate of poverty and low GDP per capita. Nonetheless, whatever the concerns, the BRICS are drawing large amounts of attention and money. A recent report said the BRICS were leading the world in attracting global investments, as of May 2011. BRICs: A “game changing” group of developing countries? | Ag Decision Maker BRICs: A “game changing” group of developing countries? AgDM Newsletter June 2010 Usually, reports from meetings of a group of country leaders don’t attract our attention all that much, but articles written after a recent meeting of leaders from a handful of developing countries made us sit up and take notice.

The event was a joint meeting of two overlapping groups of developing countries: BRIC (Brazil, Russia, India, and China) and IBSA (India, Brazil, and South Africa) or as some have dubbed the combination BRICs. These nations represent 42 percent of the world’s population, 32 percent of the world’s arable land mass, and 22 percent of the global GDP. They have been important in leading the global recovery following the recent economic crisis. They also see themselves as growing faster in the future than the U.S., the European Union and Japan. And they want to use their new-found economic clout. In fact, they see their group of countries as potentially providing a counter balance to the global power of the U.S. and the West. They are reportedly seeking influence in world venues on par with the likes of the World Bank, The International Monetary Fund and the United Nations (UN).

As a report in The Economic Times (India) said, “[Indian Prime Minister] Manmohan Singh made a vigorous case for a ‘multipolar, equitable, democratic, and just world order.’” Part of the rationale behind the April Brasilia meeting was to give BRICs the opportunity to develop a unified strategy before meetings of the G-8 and G-20 nations. A second set of issues touches closer to home and is of importance to U.S. farmers. As Aleksandras Budrys wrote in a Reuters article, “Agriculture ministers from Brazil, Russia, India and China, which together have a third of the world’s arable land, agreed on Friday [March 25, 2010] to pool resources to combat famine that affects more than 1 billion people globally. The ministers from the countries collectively known as BRIC signed a pact to create a joint agricultural information base that will help each country to calculate production and consumption balances and establish national grain reserves.” Having been affected by the 2006-2008 run-up in grain prices, they want to make sure that they are not at the mercy of other nations when it comes to their own food security.

They are looking at ways to safeguard food security by coordinating trade within the group. As was noted in a Reuters article, “The emerging BRIC economies produce 40 percent of the world’s wheat, half of its pork and a third of its poultry and beef; [and] Russia…is positioning itself as a major supplier of grains to the world market. It plans to double grain exports within 15 years and to raise its harvests by 50 percent.” Although, up to now, China has been only a sporadic net importer of grain, China’s rapidly expanding livestock industry could mean it will be a sizable fill-in importer of grains in the future. In addition to securing the use of land resources outside of the country to augment domestic grain supplies, China can use the “BRIC arrangement” to help cover future feed grain needs. Brazil is already a dominant-growth source of soybeans for the protein portion of feed rations. With regard to meat, Brazil currently supplies Russia with 65 percent of its meat imports.

At present, Russia says it wants to limit its meat imports to 15 percent of its total meat consumption, so if Brazil gets 65 percent of the 15 percent (9.75 percent), there is not a lot of room left for others (5.25 percent). But over time - read three to five years - Russia has a stated goal of joining China as virtually being self-sufficient in the production of pork and poultry. The BRICs coalition does not bode well for the portion of the U.S. export-centric farm policy narrative that is premised on ever-expanding growth in grain exports due to accelerating demand for livestock feed in China. It increases the odds that we will find ourselves awash in grains and oilseeds and be subject to drowning in the teacupful of low prices. The larger question is will BRICs achieve its desired “game changer” role in the areas of international agricultural development and trade. Daryll E.

Ray, Blasingame Chair, Excellence in Agricultural Policy, Institute of Agriculture, University of Tennessee, and Director, UT Agricultural Policy Analysis Center (APAC); (865) 974-7407; dray@utk.edu ; Ag Decision Maker, Iowa State University Extension and Outreach, Department of Economics, agdm@iastate.edu , 641-732-5574 Welcome to Brics BRICS summits: 2009-11 The first BRIC summit in Yekaterinberg, Russia took place in the backdrop of the global economic slowdown in 2008 and 2009. The agenda focused mainly on the international financial and economic situation and reform of the international financial institutions, which was carried forward at the second summit in Brasilia (Brazil) in 2010. Country leaders meeting for the first time in 2009 and reviewed the global economic and financial crisis and had consultations on issues on the agendas of the major multilateral groups – G-8 and the G-20. The summit emphasized the central role of the G-20, and considered the role BRIC could play in this body.

The leaders stressed the need for speedy implementation of G-20 decisions that were of interest to developing countries. Also underlined at the first summit were the reform of global governance and of the international monetary system, particularly of the urgency to make the latter more representative in view of the growing role of the emerging economies. The Yekaterinberg summit adopted a joint statement of BRIC leaders and a joint statement on Global Food Security. The Brasilia summit in April 2010 continued ahead with the emphasis on reform of global political and economic governance that meets the interests and developmental needs of emerging market economies and developing countries, with special focus on the interest of the poorest. The vision underlying specific agenda is the building of a harmonious world of lasting peace and common prosperity. The theme was continued in the agenda of the 3rd BRICS summit in Sanya, 2011, which was hosted by China. The Brasilia Summit also resulted in a Memorandum of Co-operation signed among BRIC Development Banks. A BRIC Statistical publication was also released. The Sanya Summit, 2011, saw BRIC enlarging to BRICS with the inclusion of South Africa into the group.

The summit took place at a time when all five member countries were together in the UN Security Council. The theme of the 3rd summit was “Broad Vision and Shared Prosperity,” and the declaration also introduced paragraphs on emerging political issues in North Africa and a more elaborate plan for intra-Brics cooperation. BRICS process and activities In addition to regular meetings of ministers , BRICS has developed a number of cooperation forums and mechanisms for deepening intra-BRICS co-operation in specific areas. Finance/Economic Ministers The first meeting of BRICS economic/finance ministers was held in November 2008 in Sao Paolo, Brazil for consultations in the wake of the economic and financial crisis. The economic/finance ministers have been meeting regularly on the sidelines of G-20 meetings and IMF and World Bank annual meetings. National Security Advisors Russia hosted a formal meeting of BRIC National Security Advisors (NSA) in May 2009 to discuss the security implications of the global financial and economic crisis. There have been two subsequent meetings of BRIC NSAs during 2010.

Agriculture Ministers Two meetings of BRICS Agriculture Ministers have taken place, the first in Moscow (2010) and the second in Chengdu, China (2011). The China meeting ended in a joint declaration and an Action Plan for 2012-2016 for agricultural cooperation among BRICS countries. A Working Group on Agriculture has also been set up. Business Forum Two BRICS Business Forum meetings have taken place, the last on the sidelines of the Sanya summit, 2011. An MoU identifying focal points in member countries for coordinating business activities has been signed. BRICS Development Banks The first meeting of Development Banks was hosted by Brazil in 2010., where a memorandum establishing the BRICS Inter-bank Cooperation Mechanism was signed. As a follow up to the mechanism established BRICS Development Banks signed a framework agreement on financial cooperation. Statistical Organizations BRICS national statistical authorities have met various times. They have also brought out a BRICS Statistical Publication. Their last meeting was in Delhi this year to revise the statistical publication for release at the Delhi BRICS summit held in March 2012.

Academic Forum/ Track II A number of BRICS forums serve as academic think tanks whose recommendations also feed into the Summit’s deliberations. They include two track II groups—BRICS Economic Research Group (ERG) and the BRICS Academic Forum. The Academic Forum in particular has introduced many innovative suggestions like creating a virtual academic community for dissemination of information and ideas, cooperative action on biodiversity issues and so on. Delhi Declaration The agenda of BRICS meetings has widened much since its beginnings to include issues like terrorism, climate change, food security and the Millennium Development Goals, as evident from the issues mentioned in the Delhi Declaration after the 4th BRICS summit held in the capital in March 2012. The Delhi Declaration states that BRICS is fully committed in the global fight against climate change and will contribute to the global effort in dealing with climate change issues through sustainable and inclusive growth and not by capping development. It emphasizes, in context, that developed country parties to the UN Convention on Climate Change (UNFCCC) should provide more financial and technology support for implementing “nationally appropriate mitigation actions” by developing countries.

The upcoming UN Conference on Sustainable Development (Rio+20) is considered a unique opportunity for the international community to renew its political commitment to sustainable development, social progress and environment protection in accordance with the principles of the Rio Declaration on Environment and Development, including “the principle of common but differentiated responsibilities”. The declaration underlines BRICS’ belief that sustainable development should be the main paradigm in environmental issues, as well as for economic and social strategies. The concept of a ‘green economy’ required to be understood in the larger framework of sustainable development and poverty eradication, and is a means, according to the Delhi Declaration, to achieve these fundamental and overriding priorities, not an end in itself. National authorities, therefore, must have the flexibility to make their own choices and define their paths towards sustainable development based on the country's development, national strategies and priorities. The Declaration resists the introduction of trade and investment barriers in any form on the grounds of developing green economy. BRICS attaches the highest importance to economic growth that supports development and stability in Africa, as many of these countries have not yet realized their full economic potential.

We will take our cooperation forward through infrastructure development, knowledge exchange and support for increased access to technology within the framework of the New Partnership for Africa's Development (NEPAD). It makes reference to the Second Meeting of BRICS Ministers of Agriculture and Agrarian Development at Chengdu, China in October 2011 and asks to take forward the process of cooperation amongst the BRICS to contribute effectively to global food security and nutrition through improved agriculture, transparency in markets, and by reducing excessive volatility in commodity prices. THE BRICS REPORT The BRICS (Brazil, Russia, India, China and South Africa) account for more than 40 per cent of the global population and a share in world GDP that has increased from 16 per cent in 2000 to around 25 per cent in 2010. The ‘BRICS Report’ by the Ministries of Finance and the Central Banks of the BRICS countries, focuses on the growth prospects and synergies between the five large emerging economies, that are expected to play a major role as growth drivers of the world economy.

The emphasis is on best practices, areas of co-operation and strengthening economic links so that the BRICS could collectively play a more central role in the ‘new normal’ of the post-crisis global economy. This is also perhaps the most opportune time for forging closer links, given that the world economy is in a state of flux and a rebalancing is taking place towards the emerging economies. Their pivotal position in the global recovery has already catapulted the BRICS into a leadership role, which needs further cementing through greater interface among economies. The report, divided into five chapters, seeks to reinforce and strengthen the position of BRICS in the global economy. Beginning with an overview of the BRICS and their governmental, financial and regulatory frameworks the report goes on to examine the impact of the global crisis, resilience of the BRICS economies, their use of fiscal and monetary stimuli, the process of recovery, as well as their contribution to global growth. The report then looks at the best practices in the BRICS and the lessons they hold for one another and the world economy. The challenges that the BRICS could face in moving to a higher growth path have been dealt with.

In concluding, the report explores areas of co-operation among the BRICS including initiatives that could propel the BRICS and the world economy to a higher growth trajectory. BRICS Development Banks The Delhi Declaration of 2012 speaks of the possibility of setting up a new Development Bank for mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries to supplement the work of existing multilateral and regional financial institutions. The leaders meeting in Delhi had directed BRICS finance ministers to examine the setting up of a Development Bank and report back to them by the next summit. BRICS member country Development banks signed 2 agreements during the Delhi Summit 2012. The first - Master Agreement on Extending Credit Facility in Local Currency – is intended to reduce the demand for fully convertible debentures for transactions among BRICS countries so as to reduce transaction costs for intra-Brics trade. The second agreement – BRICS Multilateral Letter of Credit Confirmation Facility Agreement – envisages confirmation of Letters of Credit (L/C) on receipt of a request from the exporter or the importer’s bank. This would help reduce transaction costs of intra-BRICS trade.

The first meeting of BRICS Development Banks was held in Sao Paolo, Brazil in April 2010 and an MOU was signed laying the foundation for the BRICS Inter-Bank Co-operation Mechanism. Following up on the MOU , BRICS Development Banks signed a Framework Agreement on Financial Co-operation within the BRICS Inter-bank Co-operation Mechanism at the Sanya summit in 2011. Brazil, Russia, India And China - BRIC Definition | Investopedia Brazil, Russia, India And China - BRIC Loading the player... What does 'Brazil, Russia, India And China - BRIC' mean Brazil, Russia, India and China (BRIC) refer to the idea that China and India will, by 2050, become the world's dominant suppliers of manufactured goods and services, respectively, while Brazil and Russia will become similarly dominant as suppliers of raw materials . Due to lower labor and production costs, many companies also cite BRIC as a source of foreign expansion opportunity, and promising economies in which to invest.

BREAKING DOWN 'Brazil, Russia, India And China - BRIC' BRIC is an acronym for the economies of Brazil, Russia, India and China combined, originally projected to be the fastest growing market economies by Jim O'Neill of Goldman Sachs first in 2001, but most prominently in a follow up paper published in 2003. It has been speculated that by 2050 these four economies would be wealthier than most of the current major economic powers. The Goldman Sachs thesis doesn’t argue that these countries are a political alliance (like the European Union ) or a formal trading association - but states instead they have the potential to form a powerful economic bloc. The countries haven’t announced any formal trade agreement between them, but leaders of the four countries have attended summits together, and acted in concert with each others interests. BRIC or ‘Big Four’ is now also used as a more generic marketing term to refer to these four emerging economies. Columbia University has established the BRICLab , where foreign, domestic, and financial policies of BRIC members are examined.

Introduction and Early Writing on BRIC 2001: In 2001 Jim O’Niell wrote a report , published by Goldman Sachs noting that Brazil, Russia, India and China’s GDP was set to rise 1.7% in the next year, and then be in a position to continue to grow. In the paper Building Better Economic BRICs O’Niell runs through four scenarios on measuring and projecting GDP adjusted for PPP . In all those scenarios, the nominal GDP assumption for the BRICs rises from the 2001 measurement of 8% in USD, to 14.2%. While weighted heavily by China, the other countries grow relative to G7 countries . 2003: Dominic Wilson and Roopa Purushothaman wrote a report " Dreaming with BRICs: The Path to 2050 ," once again published by Goldman Sachs making the claim that by 2050 BRIC could grow to a size larger than the G6, and that it’s quite possible that the largest economies in the world by GDP may not be the richest.

This set of projections are based on the assumption that policies and institutions are established to help support economic growth, which as the report states, is by no means a guarantee. Given the amount of projected growth – by Wilson and Purushothaman’s measurements up to 300% – even falling somewhat short of the potential growth of any or all members of the BRIC group would still entail a large amount of potential growth. The report shows a projected per capita income for BRIC countries in 2050 that would be lower than G6 countries with the exception of Russia. 2004: The Goldman Sachs global economics exam publish, Growth and Development: The Path to 2050 , a 158 page report going highlighting challenges and opportunities for BRIC countries. Roughly outlined, the report highlights India’s inefficient energy grid and consumption, projects possible growth the number of people living in BRIC countries earning more than $3,000 a year up to 800 million people within a decade.

Additionally the report looks at the lack of a substantial presence in global capital markets , and notes the large populations of while per capita income levels will remain lower than industrialized economies , the aggregate wealth of the BRIC countries will exceed that of the G6 partly due to the large populations of the countries. 2007: " BRICs and Beyond " is published by Goldman Sachs, a nearly 300 page report looking again at BRIC growth potential, environmental impact of the growing economies, and sustainability of growth. The report also looks at the Next 11 , or N-11, (a term for eleven emerging economies) in relationship to the BRIC nations, and ascendency of new global markets. BRIC Summits and Political Cooperation While BRIC has no publicly disclosed formal quadrilateral trade agreement, the heads of state of the BRICS countries have met regularly since 2009 at a yearly summit . The first summit was held in the Russian city of Yekaterinburg in 2009, presidents Luiz Inácio Lula da Silva of Brazil, Hu Jintao of China, Dmitry Medvedev of Russia, and Prime Minister Manmohan Sing of India were all in attendance.

South Africa entered a bid to join the BRIC group in August of 2010 and was eventually invited in December of that same year, and attended the April 2011 summit in the Chinese city of Sanya, effectively changing the name of the group to BRICS. Criticism of BRICs While a lot has been made about the enormous potential growth of the BRIC nations, O’Neils thesis has been challenged over the years as the economic and geopolitical climate has shifted. A couple fundamental criticisms of the the investment concept include the idea perceived by some as implicit in the argument for continuous growth by raw material providers that natural resources are limitless. Those critiquing the model of growth say that it ignores the finite nature of fossil fuel, uranium, and other resources . It’s been argued by Deutsche Bank Research and editorials written in Foreign Policy Magazine that China outstrips the other BRIC members economies by a huge amount, making up 70% GDP growth of the group countries, putting the country in a seemingly different category than other members of BRIC.

Still others have cited human rights issues in China and Russia, as well as Russia’s annexation of Crimea and direct or indirect support of Russian separatist fighters in Ukraine as reason to doubt a fundamental tenants of the BRIC thesis . An editorial written for Reuters and published in 2014 categorized Russia’s belligerency as evidence that globalization is not inevitable, nor is it irreversible. Criticism aside, as of 2013 combined GDP has outpaced Goldman Sachs expectations by nearly half. The original BRIC theory will continue to evolve as time goes on as some projections fall short and others meet their mark. Trading Center

Question: The 'BRIC Group' of developing economies became the 'BRICS Group' in 2010 by the addition of which country?
Answer: SOUTH AFRICA